Hospitals and health systems have been left to pick up the pieces as payors gobble up the most lucrative parts of the healthcare ecosystem.
The worst offender? Why, UnitedHealth Group (UHG) of course, the largest healthcare company in the U.S. And they’re looking to grow even bigger.
STAT took a deep dive into UnitedHealth Group’s financials and uncovered what should be a red flag for healthcare providers, patients, and policymakers. The mega-corp acquired or created more than 250 subsidiaries in 2024, focusing on some of the most profitable sectors in the industry: ambulatory surgery centers, specialty physician groups, and specialty pharmacies.
UnitedHealth Group’s buying spree is noticeably devoid of hospitals and services like emergency care that consistently struggle to generate true margin. And while the strategy of purchasing high revenue-producing lines of business is undoubtedly a win for UnitedHealth Group’s shareholders, it’s hurting healthcare providers and their patients.
Vertical integration is running rampant in healthcare, but anti-trust be damned when it comes to UnitedHealth Group’s ambitions. More ownership equals greater control of where and how the money flows. It’s a tale as old as time in business, so what’s the rub? When big insurance gets even bigger, the system doesn’t improve for those it’s supposed to serve. We’re seeing evidence that it creates more vulnerability.
When insurance behemoths gobble up the money-makers for their own benefit and steer patients to owned subsidiaries, hospitals, and health systems are left with the table scraps: low-margin, high-cost services that insurers avoid. They become entirely beholden to negotiated rates (if you read Un-covered at all, you know how that goes) and can no longer buoy what doesn’t produce adequate income.
Patients pay the price when hospitals are squeezed. In 2024 alone, 25 hospital closures were reported, with an additional 700 other facilities at risk of shutting their doors or ending select services. There are far too many rural communities that are reeling from reduced access to care.
When one company grows this big, is it about patient care or industry dominance? UnitedHealth Group is the industry trailblazer when it comes to positioning consolidation as innovation, but let’s call it what it really is: a power grab. Providers can’t afford to sit this one out. Silence allows insurance mega-corporations to run the show, dictate care, and squeeze until there’s nothing left. It’s time to speak up—loudly. If health systems don’t push back, they will be pushed out altogether, and patients will be stuck navigating a system built for profits, not people.
